You're watching...
Keefe, Bruyette & Woods Director of Research Fred Cannon on concerns over Bank of America’s earnings expectations and outlook.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- our financials are off to a strong start for first quarter earnings season but we have an analyst.
Was warning about one bank in particular that is reporting later this week Fred cannon director of research and chief equity strategist at AVW.
Joins us now OK Fred don't give us wedding able what is the stock that concerns you the most the financial stuff.
I went second earnings have been good so far I haven't heard it -- number that are going to be yet we still are concerned that Bank of America could disappoint.
It's been a big winner this year its stock has been driven and more off.
Improvement in Europe and any fundamentals and and we're still want.
Investors to be somewhat cautious and stay would you say for names JPMorgan Wells Fargo USB posting great numbers what is it about Bank of America -- he should be of more concern for those who were worried about Europe.
Really it's because -- this rally we've seen this year -- today.
Their leader and all the financials has been a risk on trade has had nothing really to do with the fundamentals of Bank of America they didn't ask anything -- the Fed for there.
Capital deployment earning estimates of continue to come down that company so I think earnings can -- -- cold water on a on a stock that's had a run.
Now weren't you also as I I remember you were super cautious about Citi.
But cities looking like it's -- and around OK now.
Citi did look at -- have to say that was a nice surprise today that we saw the numbers coming out of Citi.
It really looks like they're getting -- -- got a little bit of market share back and that's something we're concerned about BankAmerica to so.
-- JPMorgan Wells Fargo and Citi came through strong so far so with city apply at 34.
We think it's very compelling right now.
Is -- if you have a longer term view of the reason we've been cautious on Citi remember was because of the stress test we didn't think it farewell and they didn't -- well.
The stock still looks pretty compelling at these these levels Goldman Sachs I remember a couple of months ago when it was trading at ninety dollars has come up quite a bit since then that.
But do you think their numbers are gonna be good this week.
Sure looks like it if you look at the trading numbers at.
JPMorgan at Citi.
Goldman Sachs looks pretty geared up so I wouldn't -- -- be short going into their earnings and there is a wild card out there we've talked about this stock before with the with you -- -- people.
Sun trust.
It's kind of it's kind of -- build the little bank -- that intrigues a lot of people but some people think you be careful because it still hasn't.
Bad assets what do you think about suntrust.
I think it's -- compelling one this quarter again you know what we've seen at a JPMorgan in particular Wells Fargo -- big mortgage -- suntrust is pretty well positioned on that.
There is some concern about home equity that we could could see -- -- have that hit Bank of America.
Some of that could spill over to suntrust there we go with suntrust going lender OK and finally pull back for the macro picture you can Fred what happens to banks small at large.
When interest rates -- they're going to go -- what happens to banks that.
Initially it's going to be a very good thing when we start to see the long end of the curve steepen.
If that's what you mean and steepening curve as a good thing for banks will be a much better backdrop what we have now with a -- back below 2% Fred cannon from KBW Fred thank you so much great stuff appreciate it again.
